Foreign Contribution (Regulation) Amendment Rules, 2023

September 26, 2023

The Ministry of Home Affairs (MHA) has recently issued a gazetted notification, introducing amendments to the Foreign Contribution Regulation Act (FCRA) rules. These changes have a significant impact on non-governmental organizations (NGOs) with FCRA licenses and individuals who receive foreign contributions.

FCRA Amendment Rules, 2023

In a notification, the Ministry of Home Affairs invoked Section 48 of the FCRA to make necessary rule changes. These amendments are officially titled “Foreign Contribution (Regulation) Amendment Rules, 2023” and are effective upon their publication in the Official Gazette.

Earlier Relaxations

The MHA had previously revised foreign funding rules, providing some relaxations. These relaxations allowed relatives to send larger sums under the FCRA and extended the time frame for organizations to inform the government about opening bank accounts for funds received under the ‘registration’ or ‘prior permission’ category.

Expanded Beneficiaries

The new rules bring significant changes to who can receive foreign contributions without facing prosecution. Notably, political parties, members of legislatures, election candidates, judges, government servants, journalists, and media houses, who were previously barred from receiving foreign contributions, will no longer be prosecuted if they receive such contributions from relatives abroad. Importantly, these recipients will have up to 90 days to inform the government about these contributions.

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